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It is of course possible to take a number of security measures without serious detriment to the economic interests of the Colony, and this Government has taken, and will continue to take, such measures to the maximum extent possible, but there is a limit beyond which we cannot go without affecting most adversely the economic role of the Colony.
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8. The main purpose of this despatch is to ascertain whether this Government is correct in its assumption that, except in time of actual war, the primary importance of the Colony is economic and not strategic, thus differing from Gibraltar where the roles are reversed. If the decision is that henceforth strategic considerations are to take first place, then defence planning will be enormously simplified and immigration control etc. can be instituted.
can be instituted. But it should be appreciated that if this is the decision the Colony s trade will wither, and the local Government's revenues decline whilst the defence expenditure ill increase substantial contribution by His Majesty's Government would be unavoidable.
9. My own view is that what has hitherto been the historic role of Hong Kong ar an imperial trading base, which has brought and will continue to bring so much prosperity to British interests and prestige to Britain, should not be abandoned, but should be reaffirmed: it being understood that the local Government will continue to take all possible measures of defence and secur- ity, provided that they do not jeopardise the primary function of the Colony as an imperial tråding base.
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I should be grateful for early guidance on the question raised in paragraphs 8 and 9 of this despatch. An early answer is also required to paragraph 6 of my Top Secret despatch No. 9 of 28th February.
I have the honour to be,
Sir,
Your most obedient, humble servant,
(Signed) A.G. GRANTHAM
THE RIGHT HONOURABLE
A. CREECH JONES
M.P.
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GOVERNOR.
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